The gems and jewellery sector has expressed disappointment over the government’s proposal to impose 1 per cent excise duty, saying the issue of mandatory PAN card was also not addressed.
Finance Minister Arun Jaitley proposed 1 per cent excise duty on jewellery without input credit or 12.5 per cent with input tax credit on jewellery, excluding silver other than studded with diamonds and some other precious stones.
Sreedhar GV, All India Gems and Jewellery Federation (GJF) Chairman, said, “We are disappointed. The proposed 1 per cent excise duty will reduce the ease of doing business as the gems and jewellery sector consists of less educated but highly skilled manpower, who are not equipped to deal with the cumbersome process required for it.”
He said the proposal would affect the sector, which was already grappling with challenges after the government’s decision to make PAN cards mandatory for any transaction of Rs 2 lakh and above in January. — PTI